“Compound interest is the most powerful force in the universe”. Whether or not the world’s most famous scientist, Albert Einstein actually said this remains up for debate. However, the fact of the matter is; compound interest is indeed one of the strongest forces in the world. So strong in fact that it has the capability to make or break a person.
Credit card debt, in particular, has driven many people to bankruptcy or even worse. But fret not, as there is hope. With the right management skills and a little discipline, you’ll be able to quickly dispense of your credit card debt.
Here, we take a look at 4 of the easiest ways for managing credit card debt.
1. Start paying off your debt!
While many may argue that this is easier said than done, Laozi; a famous Academic once said that “a journey of a thousand miles begins with a single step”. Get started on your way to a debt-free lifestyle by making above minimum payments on your existing credit card debt.
By paying above the minimum amount, you’ll be able to pay off existing interest charged while reducing the size of your debt at the same time. On the long-term, you’ll find that you’ll pay less in interest owed and this gets you into the habit of making payments on time.
Dragging out your credit card debt only means being in the red for a longer period of time, while giving banks the opportunity to make more off you.
2. Dial it all back
In today’s age of social media and instant gratification, one is constantly bombarded by images of acquaintances living the “perfect lifestyle”. From exotic beach holidays in Bali to fast cars and fancy restaurants, it may be tempting to try and keep up with your “jet setting” friends. After all, you only live once right?
Wrong. Saddling yourself with crippling credit card debt is a quick way to ruin your life and credit rating. All of this just to impress your Instagram followers?! We think not.
Instead, skip the dinners out and learn how to cook yourself a delicious meal. Looking to go on vacation? Sure, pay for it with cash. By forking out cold, hard cash on your purchases, you’ll be much less likely to splurge on extravagant expenses that you don’t need.
On the long-term, you’ll find yourself getting used to paying everything with cash while minimizing your debt exposure. With a little discipline, you’ll be able to enjoy financial freedom without becoming a slave to debt.
3. Consider taking on a balance transfer
One effective way to prevent your debt from ballooning any further is with a balance transfer. In a nutshell, balance transfers allow you to transfer existing credit card debt to a new card that charges little to no interest.
This allows you to pay off your debt without having to worry about exorbitant monthly interest charges while allowing you to pay off your debt without any pressure.
A word of caution though; 0% interest does not mean that you should spend to your heart’s content. Preferably, the balance transferred to the new card should remain as such with monthly repayments being made.
4. Take on a side-gig
Okay, so you’ve found yourself underwater with a sizeable credit card debt. So why spend time fretting over it when you could get a side-gig to help pay off your expenses. From writing articles to designing brochures and even getting a part-time job, searching for alternative sources of income is an excellent way to scrape together the funds to pay off your debt.
Lacking the required skills? No sweat, there are dozens of websites which pays you for completing surveys allowing you to make money with a PC and internet connection.
For the ambitious, you could even earn some extra money punting on horse racing. Follow the latest events in the horse racing schedule and try to cash in some money. Just remember to not gamble more than what you own, because it can increase your debt. Betting on sports should be done wisely and in small amounts, so even if you have less profit, you will also have less chances of losing money.
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